Resisting managing for the short term

Executives don’t have to fall into the trap of short-termism to serve their shareholders, say McKinsey principal Tim Koller and senior expert Marc Goedhart, two of the coauthors of the sixth edition of Valuation: Measuring and Managing the Value of Companies. In this episode of the McKinsey Podcast, Koller and Goedhart talk with McKinsey Publishing editorial director and McKinsey Quarterly editor in chief Allen Webb about how CEOs can avoid short-termism and listen more closely to investors who focus on a company’s performance over time.